Daily Deduction

Tariffs, Technical Corrections, and Tax Dialogue

Senator Bob Corker introduces legislation to slow Trump’s tariff train. Under the Tennessee Republican’s bill, Congress would have to approve tariffs levied under Section 232 of a trade law relating to national security. The bill would be retroactive and thus apply to the tariffs Trump already has announced.

Just as Mexico settles on its plans for a 20 percent tariff on pork. The tariffs are in retaliation to the sanctions imposed by the Trump Administration. Mexico’s tariffs would apply to pork legs and shoulders from US suppliers that account for 90 percent of Mexico’s $1.07 billion in annual imports of US pork products. Iowa farmers are nervous, to say the least.

About that August vacation. It’s not going to happen, at least for the Senate. Majority Leader Mitch McConnell has cut the chamber’s August recess down to just one week. He says it is to work on nominations and legislation. It really is to keep many Democratic incumbents trapped in Washington so they can’t campaign. Ten Democrats are running for reelection in states won by President Trump in 2016.

More than 100 retailers and restaurants tell Congress to fix the new tax law. In a letter signed by groups including the National Retail Federation and Retail Industry Leaders Association, the businesses urge Congress to make two technical corrections to the Tax Cuts and Jobs Act. One involves a drafting error relating to the speed with which they can write off costs of store renovations.

While another fix would help victims of sexual harassment. With a misplaced word, the TCJA eliminates the deduction that companies once took when they settled sexual harassment cases that included non-disclosure agreements. A senior Republican aide said lawmakers are working on the issue.

Why do government budget estimators miss the costs of tax subsidies and entitlement spending? TPC’s Gene Steuerle explores the pitfalls of projecting the costs of these programs and identifies what he sees as a long-term bias that underestimates their budget effects.

Leaving the White House for greener pastures. Shahira Knight, the deputy director of the National Economic Council, is leaving her post to work for The Clearing House Association, a trade group that represents large banks. She was the key White House staffer in development of the TCJA.

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